Web Developer Taxes in Delaware - 2026 Guide

Updated for 2026 (Filing 2025 Taxes)

Tax Essentials for a Web Developer in Delaware

Delaware’s thriving tech scene offers web developers exciting opportunities, but navigating the tax landscape as a freelancer or independent contractor requires careful planning. As a self-employed web developer, understanding both federal and Delaware state tax obligations is crucial for financial health.

The IRS requires all self-employed individuals, including web developers, to report income and expenses on Schedule C (Profit or Loss From Business) with Form 1040. Income exceeding $400 necessitates the payment of self-employment tax, covering both Social Security and Medicare contributions. Accurate record-keeping throughout the year is essential to maximize deductions and ensure compliance.

How Delaware Handles Gig Worker Taxes

As a resident of Delaware, a state income tax return is required, even if no Delaware income tax is ultimately due. Delaware utilizes a graduated income tax system, meaning the tax rate increases as income rises. For the 2025 tax year, Delaware residents will file using Form 1040-D, the Delaware Individual Income Tax Return. The rates for the 2025 tax year (based on 2024 rates, as 2025 rates are not yet finalized) are as follows: 0% on the first $13,800 of taxable income for single filers, 2.2% on income between $13,801 and $25,200, 3.9% on income between $25,201 and $60,000, 4.7% on income between $60,001 and $120,000, and 5.7% on income over $120,000. Married filing jointly rates are double the single rates for the first two brackets, and proportionally higher for the remaining brackets. Delaware also offers various credits and deductions, so exploring these options is recommended. Delaware does not have local income taxes levied by cities or counties. It's important to note that Delaware’s tax year follows the federal tax year, ending December 31st. Estimated tax payments are required if your expected tax liability is $400 or more. Resources and forms can be found on the Delaware Division of Revenue website: Delaware Division of Revenue.

Key Tax Deductions for Home-Based Web Developers

• Home Office Deduction: To claim the home office deduction, the space must be used exclusively and regularly for business. “Exclusive use” means that portion of your home is used solely for your web development work – it cannot double as a guest room or family space. “Regular use” means you use the space consistently for your business. You can calculate the deduction using the simplified method ($5 per square foot, up to 300 square feet) or the actual expense method (calculating a percentage of your mortgage/rent, utilities, etc., based on the square footage used for business).
• Hardware & Software: The cost of computers, monitors, cameras, and essential software subscriptions (like Adobe Creative Cloud, web hosting, or development tools) are generally deductible as business expenses. For items with a useful life of more than one year, depreciation or Section 179 expensing may apply.
• Internet & Phone Bill: If you use your internet and phone for both personal and business purposes, you can deduct the percentage attributable to business use. Keep detailed records of how you allocate usage.

Note on Mileage: As a home-based worker, mileage deductions are less common. However, you can claim mileage for occasional trips to meet clients, attend industry events, or purchase supplies directly related to your business.

The 15.3% Self-Employment Tax Explained

The 15.3% self-employment tax comprises two components: 12.4% for Social Security and 2.9% for Medicare. This tax is essentially the equivalent of the employer and employee portions of these taxes when working for a traditional employer. You can deduct one-half of your self-employment tax from your gross income when calculating your adjusted gross income (AGI).